HomeMy WebLinkAboutPolicy Regarding Capital Improvement Projects
Augusta Richmond GA
DOCUMENTNAME~O\ ie.-lJ ~eo.,o.m i~ Ca-pi+aJ Irn?rtlV€.N\eY\-t"
: ~V-Oj~S
DOCUMENT TYPE:b U O~T
YEAR:
2Dol
BOX NUMBER: ~ ~
FILE NUMBER: \ J ~~ 5"
NUMBER OF PAGES:' 3
--
. 'f,'
-;
;;3
"7
POLICY REGARDING CAPITAL IMPROVEMENT
PROJECTS, INCLUDING SPLOST, WATER AND
SEWER, AND CAP IT AL OUTLAY.
BACKGROUND
The Citizen Budget Review Committee made recommendations to the Augusta-
Richmond County Commission concerning Augusta's budget, including a recommendation that
the Commission:
[r]eviewall existing projects (Sales Tax, Capital Outlay, Water & Sewer, etc.) to
determine annual future operations cost impact giving specifics as to additional
position, salary and fringe benefits and materials and supplies and the year these
increases will impact the operating budget.
ANALYSIS
Projects for Phases I through IV of the Special Purpose Local Option Sales Tax have
already been approved by the Commission and submitted to the voters, but limited flexibility
was included in the Resolutions adopted for projects in Phases III and IV. Specifically, the
Phase IV Resolution provides in part as follows:
The total amount of proceeds of the Tax to be spent on the projects in each of the
categories of purposes set forth above shall be in the total amount specified for
each such category. However, use of Tax proceeds to pay cost of projects may be
shifted between projects as needs dictate and as the Augusta-Richmond County
Commission in its discretion shall determine.
* * *
Conditions may change making a proposed project no longer feasible or
increasing the cost thereof to an amount exceeding the funds available. In any
such event, the Augusta-Richmond County Commission may change the size
and scope of such project to make the project one which is feasible and the
cost of which are within the funds available, or eliminate the project and
transfer the funds allocated thereto to other projects within the same category of
1
,-.
..
'i
projects iffunds are needed for the remaining projects within such category and,
if not, to projects in one or more of the other categories.
Further, as the Citizen Budget Review Committee's recommendation impacts the Water
& Sewer projects, it must be recognized that representations were made to the potential bond
purchasers as to the use of the bond proceeds. The Parity Bond Resolution provides in part as
follows:
Section 14. Approval of Svstem Improvements, The additions,
extensions and improvements to the System and equipment
therefor shall be accomplished substantially in accordance with
the Engineering Report. The Engineering Report and the
additions, extensions and improvements set forth therein are
hereby authorized and approved in the Engineering Report, by this
reference thereto, is incorporated herein and made a part hereof.
* * *
Section 16, Engineering: Re{lort, The additions, extensions and
improvements to the System now contemplated shall be
accomplished in accordance, or substantially in accordance, with
the Engineering Report, attached hereto as Exhibit B.
Therefore, projects to be funded by SPLOST or by bond proceeds can be evaluated so as
to be constructed in a manner that operating costs are evaluated as a part of the construction
design and are considered in the approval process, provided that the water and sewer projects are
accomplished substantially in accordance with the Engineering Report.
POLICY STATEMENT
In order to maximize the use of the SPLOST funds and the Water & Sewer Revenue
Bond Funds and other Capital Outlay funds, projects included in the SPLOST Capital
Improvement Plan, the Water & Sewer Revenue Bond program and Engineering Report, or other
2
(-~: .. ..
j
Capital outlay projects, prior to approval and funding, such projects should include an analysis of
the impact of future operations costs, including an analysis of any need for any additional
personnel, including salary and fringe benefits, and other operational needs such as materials and
supplies, as well as any savings resulting from the construction of the project, or the anticipated
pay back for the project through future revenues. All such information should be considered in
order to plan for any proj ected budget increase as a result of the construction of such proj ect and
the year(s) that the operating budget will be impacted.
August 27,2001
..,
.J